What type of trust is created by a decedent's will and becomes effective at death?

A testamentary trust is a specific type of trust that is established according to the instructions given in a decedent's will. This trust does not come into existence until the individual who created it passes away. At that point, the provisions specified in the will dictate how the assets should be managed and distributed, typically for the benefit of designated beneficiaries.

Unlike a living trust or inter vivos trust, which are created during an individual's lifetime and can be active while the person is still alive, a testamentary trust becomes effective only after death. Additionally, a revocable trust can be altered or canceled by the grantor during their lifetime, reinforcing further that the testamentary trust specifically holds its validity posthumously as outlined in the will.

This post-death activation is crucial because it allows the testator to control the distribution of their assets after they are no longer alive, addressing specific needs or conditions they wish to impose on their beneficiaries, such as age restrictions or the requirement to achieve certain milestones before receiving their inheritance.